Cytori Shares Surge in Wake of Licensing Deal With Chinese CompanyWednesday, November 6, 2013
San Diego-based Cytori Therapeutics Inc. could receive as much as $531 million in an Asia Pacific licensing deal with Chinese regenerative medicine company Lorem Vascular.
Lorem will initially invest $24 million in Cytori (Nasdaq: CYTX) , paying $3 per share for 8 million shares. Since the announcement, Cytori’s stock skyrocketed 60 percent, closing day trading Nov. 5 at $3.35.
Lorem said it would also order $7 million of Cytori’s products — with aims to market them in China, Hong Kong, Malaysia, Singapore and Australia. The license grants Lorem exclusivity to Cytori’s technology for 30 years.
Cytori has technology that can reconfigure patients’ fat cells, which have been found to have regenerative properties, and uses them to develop breast reconstructive tissue and treatments for heart disease.
— SDBJ Staff Report